Corio registered a 4.5% like-for-like net rental growth in 1Q 2007, the Dutch commercial property company said. This compares with a much higher figure of 7.2% issued by Rodamco for the first quarter of the year. Corio said tha net rental income growth was offset by the increase of financing costs (EUR 5.8 mln), administrative expenses (EUR 1.2 mln) and taxes (EUR 0.3 mln). EBIT (Earnings Before Interest and Tax) increased by EUR 6.3 mln or 9.5% to EUR 72.6 mln.
Corio registered a 4.5% like-for-like net rental growth in 1Q 2007, the Dutch commercial property company said. This compares with a much higher figure of 7.2% issued by Rodamco for the first quarter of the year. Corio said tha net rental income growth was offset by the increase of financing costs (EUR 5.8 mln), administrative expenses (EUR 1.2 mln) and taxes (EUR 0.3 mln). EBIT (Earnings Before Interest and Tax) increased by EUR 6.3 mln or 9.5% to EUR 72.6 mln.
The property portfolio's average occupancy rate improved 0.6%-point from 95.6% in year-end 2006 to 96.2% in 1Q 2007. The portfolio's internal revaluation result based on rental growth and no yield compression came to EUR 53.3 mln, which is 1% of the book value at year-end 2006. The revaluation was almost exclusively driven by retail (EUR 52.9 mln).
The value of the property portfolio increased to EUR 5.7 bn from EUR 5.5 bn in year-end 2006. The fixed pipeline increased by EUR 274 mln, whereas the total FVP-pipeline (fixed, variable and potential pipeline) increased by EUR 111 mln or 5.2% to EUR 2.2 bn. Merchant bank Kempen & Co said it expects 'very limited internal growth for 2007.' However, analyst Dick Boer of Kempen said he is 'positive on the revaluation that is based on an internal valuation showing no yield compression.' The bank has reiterated its reduce recommendation on Corio's stock.